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Demand Based Pricing: Described methods belong to the category of demand / market based pricing:-
1. What the Traffic can Bear' Pricing
2. Skimming Pricing
3. Penetration Pricing
The price elasticity of demand is taken into account in all of the demand based pricing methods, indirectly or directly. Price elasticity of demand refers to the relative sensitivity of demand for a product to changes in its value in other words how significantly the sales of the product are affected when price is changed. If decrease or increase in the price of the product results in significant increase or decrease the product is said to be price elastic conversely, if price change does not considerably affect the sales volume, a product is called to be price inelastic.
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Describe the concept of market segmentation, targeting and positioning (STP''s) with a typical example of either a product or an organization you are familiar with.
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what definition of total sales?
how can we calculate pricing
Q. Explain various factors in marketing environment & tell about the need to analyze the marketing environment? Ans.: Purpose of marketing environment analysis are followin
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